The 2/1 Buydown Mortgage Explained

If you are an agent with a listing that is starting to sit and are considering a price reduction, or if you are a buyer who is looking at a way to bridge the gap between now and when rates level off without taking an adjustable rate mortgage, check out this video on the 2/1 buydown.

[hotopic]

Thank you for sharing! I have a clear vision of how a 2-1 works 👍🏼 Can’t wait to share these with rate sensitive clients!

[RealEstateAshley]

Great video! Thank you for making it simple and quick.

[Pheseg]

Awesome video good job explaining this. Thank you.

[amreeshr]

Great explanation, thanks.. So In your example, who gets 14k? Lender or Buyer? If Buyer gets it, can the buyer use it for closing cost?

[TeeWalz]

So wait, 14k paid upfront to save 14k over the next two years? Isn’t that just a wash of money? Why not just using the 14k for closing costs? Then the benefit is you don’t have to fork that money over out of your own pocket. But regardless of how you spend it, you save 14k?

[JohnDoe-heyf]

Thank you for your service. Essentially, if the seller is willing to do this in the closing costs there's no downside to me (the buyer)

[MohMir]

Great explanation! Thanks for breaking it down using the spreadsheet 🙏

[TheJpolseno]

Great video! Would you be able to send over a copy of the excel calculator?

[flipmex]

So for the 2/1 buy down to be cost effective, you have to hope to be able to refinance within the first 2 years right? We are just using the seller credit in a different fashion, which actually keeps our CTC to a certain amount, instead of decreasing it by whatever the credit amount is. All in hopes of refinancing within 2 years. If rates are 6.1% in 2 years or higher, this doesn’t work, and you essentially shelled out an interest free loan to the bank for 2 years. Did I miss something?

[jennyspringmann]

May I please have a copy of that calculator?

[cakujuo]

Why are you not better off asking for $15k in cash? If rates drop in a year, you’d be better off.

[cgarza]

Great Vid man. I'm looking at trying this for a house i'm trying to buy. Can you send me the calculator ? I'll sub and drop a like.

[samanthacaraveo]

Thanks for making a clear and concise video! I've seen several and this is by far the best! May I have a copy of the calculator? I've subscribed & liked! Sent email. Thanks so much!

[kaitlynsitro]

Thank you for this! So basically if I'm buying a home for 250k and the buy down costs 7k, the seller would take 7k out of that 250. I wouldn't need to offer 7k more making the total cost $257, right?

[tabbott]

Its funny the gimmicks they come up with to entice people to bury themselves in debt.

[marisolperez]

Liked and Subscribed to your page. Emailed you yesterday, please help me out with the Spreadsheet. Thanks for the great explanation!